Feds Grab $150 Million Tied to Hezbollah Money-Laundering

The U.S. seized $150 million in
connection with a Hezbollah-related money laundering scheme that
involved the defunct Lebanese Canadian Bank, the U.S. Attorney’s
office in Manhattan said.

The funds came from a U.S.-based account of Beirut-based
Banque Libano Francaise SAL, which is holding money in escrow
from the $580 million sale of the defunct Lebanese Canadian Bank
to Societe Generale de Banque au Liban, prosecutors said in a
statement.

Lebanese Canadian Bank, based in Beirut, was accused by
federal prosecutors in December of helping launder at least $329
million for the Hezbollah, designated as a terrorist
organization by the U.S. State Department, in a scheme that
involved buying and selling used cars. Cash from the car sales
as well as proceeds of narcotics trafficking were funneled to
Lebanon through the scheme, the U.S. alleged.

“Money is the lifeblood of terrorist and narcotics
organizations, and while banks which launder money for
terrorists and narco-traffickers may be located abroad, today’s
announcement demonstrates that those banks and their assets are
not beyond our reach,” said Manhattan U.S. Attorney Preet Bharara in a statement.

Societe Generale de Banque au Liban, based in Beirut, and
Banque Libano Francaise SAL are not accused of any wrongdoing,
prosecutors said.

The case is U.S. v. Lebanese Canadian Bank SAL, U.S.
District Court, Southern District of New York (Manhattan).